Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please make sure there are 3 journal entries and is in the same format. Thx Part A: You and two friends started a company called

Please make sure there are 3 journal entries and is in the same format. Thx

image text in transcribed

Part A: You and two friends started a company called Pro Gamers Inc. on January 1, 2019 to develop a new RPG game. It is now March 31, 2019, the end of the first quarter of operations. The following are the first two journal entries completed for your business Date Account Titles and Jan. Explanation Computer Equipment Debit Credit 42,000 2 Cash 12,000 Notes Payable Purchased computer equipment and issued 2-year note payable at an 30,000 interest rate of 8% Office Supplies 3 4,000 Cash 4,000 Purchased office supplies to start the business Required: Assuming March 31, 2018 is your selected year-end prepare the required adjusting entries for the transactions above. You also noted that your computer equipment is expected to last 5 years and at the end of March you only had about $800 left in office supplies. Be sure to show all your work. (There should be 3 entries altogether and round everything to the nearest month) Part B: Why is the cash basis of accounting not used when preparing general purpose financial statements? What method is used instead and why is it more appropriate? Use an example to support your discussion and demonstrate the differences between each method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-13

Authors: John Price, M. David Haddock, Michael Farina

15th Edition

125999516X, 9781259995163

More Books

Students also viewed these Accounting questions

Question

8.10 Explain several common types of training for special purposes.

Answered: 1 week ago